True or false1 the calculation of the cost of capital, Ask an Expert

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TRUE or FALSE

1. The calculation of the cost of capital depends upon the historical cost of funds.

2. The discount rate that equates a future stream of expected dividends to the current price is a good approximation of the cost of common stock.

3. The cost of retained earnings is considered to be equal to the required rate of return on a firm's outstanding common stock.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91790091

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